"Once a loan is taken, obviously it can't be more than 50% of the vested balance (up to $50k). What happens once the loan is taken? Does the 50% still stand? If a participant with a loan then wants to take an in-service distribution (as allowed by the document), can they not take it if it brings the loan balance to be greater than 50% of the balance (i.e. if someone who is eligible opts to take 100% of their balance, leaving the only current asset as the loan balance)? I've been told by a record keeper that the 50% rule no longer stands once the loan is taken, but I wanted to confirm. Is there anything in the regs that I can cite, if I'm correct?"

"The 5500 was prepared with all capital letters. 5558 was prepared with both upper and lower case letter. Vendor check generated an error stating the 2 forms do not match which was not error before. Vendor said it is probably because of the above. This is something new? Why should it be an error? Checked both forms for other mismatched information but there was none. Anyone encountered anything like this?"

"Company A maintains a 401(k) plan, consisting of only 1 participant, the owner. Supposedly the ER terminated this plan within the last 6 months. Assets possibly not yet distributed. Company A purchases Company B in a stock sale, within the last month. Company B maintains a 401(k) plan. Can Company A 'inherit' a plan in a stock sale without violating the 12 month successor rule? If Company A's 401(k) plan assets are not yet distributed, can we rescind the plan termination and merge the Company B plan into Company A's plan? If the assets have been distributed, what options exist? Or does the 12 month successor rule not apply when the sponsorship of a plan is the result of the acquisition of a company in a stock sale?"